Does your CC usage before the monthly statement closes affect your credit score?

[money_talks]

If you utilize 99% of your CL but don't go over limit, and pay off in full before the monthly statement closes, does the high utilization affect credit scores?

I have seen in my credit reports that there is a "high balance" for each credit card listed. So in this example, if my CL was 100, it would show my high balance is 99. Is this "high balance" only important for manual reviews or does it affect your scores?

If the high balance does not affect credit score, does it have any impact on getting future CLI or reduction in APR from banks? Or do banks not care at all how you use your card and simply use FICO scores when determing future CLI or reductions in APR?

[enharu]

Nope it doesn't affect your scores if the balance do not post.

High balance is just basically to show creditors usage. It's one of the many areas they do look at for CLI consideration.

[djc1puno]

+1

[money_talks]

enharu wrote: High balance is just basically to show creditors usage. It's one of the many areas they do look at for CLI consideration.

To be clear, you are saying that the "high balance" on credit reports shows usage only and does not affect credit scores right?

So if you have a $100 CL, what would a "high balance" of $10 and "high balance of $99 mean as far as getting you a CLI? Which is best to have if you are trying to get a CLI?

Most banks report to credit bureaus once a month. Is this the standard or are there some banks that report more than once a month?

Thanks

[manwoot]

---

@money_talks wrote:

enharu wrote: High balance is just basically to show creditors usage. It's one of the many areas they do look at for CLI consideration.

To be clear, you are saying that the "high balance" on credit reports shows usage only and does not affect credit scores right?

So if you have a $100 CL, what would a "high balance" of $10 and "high balance of $99 mean as far as getting you a CLI? Which is best to have if you are trying to get a CLI?

Most banks report to credit bureaus once a month. Is this the standard or are there some banks that report more than once a month?

Thanks

---

A high balance of $99 is going to look better for a CLI.  If you don't even use what you have, why should they give you more?

[Dubious]

Reporting once a month is the norm. Banks may sometimes report an additional time if something changes, like your address.

[money_talks]

Thanks for the replies.

One more question.

My monthly statement will come out tomorrow. My Credit One card has a CL of $650. I currently have a posted balance of $50 and $600 in available credit. Can my credit score be affected tomorrow if I make a purchase for $600 today? Credit One is usually slow in posting balances like many other banks. So tomorrow my available credit will be $0 and my balance will still be $50. What will get reported to the credit bureaus?

I haven't seen any of my credit reports that show what the current available credit is for a credit card.

[enharu]

---

@money_talks wrote:

Thanks for the replies.

One more question.

My monthly statement will come out tomorrow. My Credit One card has a CL of $650. I currently have a posted balance of $50 and $600 in available credit. Can my credit score be affected tomorrow if I make a purchase for $600 today? Depends on when the actual charge posts. Sometimes it takes up to a few weeks for an authorization to be posted into an actual charge. Sometimes it takes 1 day. It depends on the merchant. If it does post tomorrow, your card will basically report as maxed out. Credit One is usually slow in posting balances like many other banks. So tomorrow my available credit will be $0 and my balance will still be $50. What will get reported to the credit bureaus? a balance of $50 will be reported.

---

Answered in red.

[tinuviel]

---

@money_talks wrote:

Thanks for the replies.

One more question.

My monthly statement will come out tomorrow. My Credit One card has a CL of $650. I currently have a posted balance of $50 and $600 in available credit. Can my credit score be affected tomorrow if I make a purchase for $600 today? Credit One is usually slow in posting balances like many other banks. So tomorrow my available credit will be $0 and my balance will still be $50. What will get reported to the credit bureaus?

---

This all depends upon when the charge for foday's purchase settles. Usually, it will show up as a pending charge for a day or so, in which case your posted balance of $50 is what would be reported. But it's not impossible for the charge to settle overnight and then be added into your posted balance. If you could wait the extra day, it would be safer.

[money_talks]

Alright, so just to be clear, banks only report your current balance and NOT your current available credit as of the date the statement closes. Your current available credit has no impact on your credit score as long as any pending authorizations have not been posted to your account balance.

Is that correct?